[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2342 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2342

   To authorize associations of independent producers of natural gas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 1995

Mr. Smith of Texas (for himself and Mr. Bryant of Texas) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To authorize associations of independent producers of natural gas.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Natural Gas Competitiveness Act of 
1995''.

SEC. 2. ASSOCIATIONS OF INDEPENDENT PRODUCERS OF NATURAL GAS.

    (a) Activities.--(1) Subject to sections 3 and 4, independent 
producers of natural gas may act together in associations, corporate or 
otherwise, with or without capital stock, in collectively producing, 
gathering, transporting, processing, storing, handling, and marketing 
in intrastate, interstate, and foreign commerce, natural gas (including 
natural gas liquids) produced in the United States.
    (2) For purposes of paragraph (1)--
            (A) such associations may have marketing agencies in 
        common, and
            (B) such associations and members of such associations may 
        make the necessary contracts and agreements to carry out the 
        activities described in such paragraph,
if such associations are operated for the mutual benefit of the members 
thereof and comply with subsection (b).
    (b) Requirements.--For purposes of subsection (a)(2), an 
association shall--
            (1) not deal in natural gas (including natural gas liquids) 
        produced by nonmembers in an amount greater in volume than \1/
        2\ of the volume of natural gas (including natural gas liquids) 
        that is produced by members of the association and handled by 
        the association for such members, and
            (2) in any calendar year not deal in natural gas (including 
        natural gas liquids) in an amount greater in volume than 20 
        percent of the volume of natural gas (including natural gas 
        liquids) produced in the United States in the preceding 
        calendar year.

SEC. 3. TERMINATION OF ACTIVITY.

    (a) Complaint.--If the Attorney General of the United States has 
reason to believe that an association to which section 2(a) applies, 
monopolizes or restrains trade in intrastate, interstate, or foreign 
commerce to such an extent that the price of natural gas or natural gas 
liquids is unduly enhanced by reason of the activity of the 
association, the Attorney General shall serve upon the association a 
complaint that--
            (1) states a claim in that respect,
            (2) contains a notice of hearing on such claim to be held 
        at a place and on a date (not less than 30 days after the 
        service of the complaint) specified in the complaint, and
            (3) requires the association to show cause why the Attorney 
        General should not issue an order requiring the association to 
        cease and desist from the monopolization or restraint of trade.
    (b) Hearing.--At the hearing referred to in subsection (a), the 
association that is the subject of such hearing may show cause why such 
order should not be entered. Evidence taken at such hearing shall be 
taken under such rules as the Attorney General may issue, shall be 
reduced to writing, and shall be made a part of the record of the 
proceeding on the complaint containing the notice of such hearing.
    (c) Order.--If, based on the hearing referred to in subsection (b), 
the Attorney General determines that such association monopolizes or 
restrains trade in intrastate, interstate, or foreign commerce to the 
extent that the price of natural gas, or natural gas liquids, is unduly 
enhanced, the Attorney General shall issue and cause to be served upon 
the association an order reciting the facts found by the Attorney 
General and directing such association to cease and desist from 
monopolization or restraint of trade.
    (d) Review.--(1) On the request of the association that is subject 
to an order issued under subsection (c) or if the association fails or 
neglects for 30 days to obey such order, the Attorney General shall 
file in the district court of the United States for the judicial 
district in which the association has its principal place of business a 
petition for enforcement of such order, together with a certified copy 
of the order and the record of the proceedings on the complaint on 
which the order is based.
    (2) The court shall have jurisdiction to affirm, modify, or set 
aside the order, or to enter such other order as the court may deem 
equitable.
    (3) The facts found by the Attorney General and set forth in the 
order issued by the Attorney General shall be prima facie evidence of 
such facts, but either party may adduce additional evidence.
    (4) During the pendency of the petition, the court may issue a 
preliminary injunction forbidding such association from violating all 
or part of such order.

SEC. 4. LIMITATION.

    Nothing in this Act shall restrict the right of a person or State 
to assert any claims against an association which may accrue under--
            (1) section 2 of the Sherman Act (15 U.S.C. 2) for the 
        monopolization of trade by the association to such an extent 
        that the price of natural gas is unduly depressed or unduly 
        enhanced by reason thereof or by reason of a denial of access 
        to essential facilities,
            (2) section 2 of the Clayton Act (15 U.S.C. 13) for undue 
        discrimination in price by the association,
            (3) section 3 of the Clayton Act (15 U.S.C. 14) for 
        imposition of exclusive dealing arrangements by the 
        association, or
            (4) any State common purchaser law, State common carrier 
        law, or State law enacted to prevent discrimination as to price 
        or access to market.

SEC. 5. DEFINITION OF INDEPENDENT PRODUCER OF NATURAL GAS.

    The term ``independent producer of natural gas'' means a person who 
produces natural gas (including natural gas liquids), but excludes a 
person with respect to whom section 613A(c) of the Internal Revenue 
Code of 1986 is inapplicable by reason of the operation of paragraph 
(2) or (4) of section 613A(d) of such Code.
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